CPMI-IOSCO’s UTI rules require coordination, says ISDA
04 September 2020 New York
Image: furtseff / Adobestock
The International Swaps and Derivatives Association (ISDA) has written to global regulators seeking support for the generation and implementation of unique transaction identifiers (UTIs) and coordination of the compliance dates across jurisdictions.
The letter written to the Financial Stability Board highlights several important challenges and potential adverse ramifications for industry participants that would likely result from inconsistent adoption of the Committee on Payments and Market Infrastructures (CPMI) and Board of the International Organization of Securities Commissions (IOSCO) technical guidance for UTIs.
The guidance, first published 2017, aims to produce clear guidance to authorities on the definition, format and usage of UTIs that meets the needs of users. The framework is global
in scale and based on relevant ISO technical standards where applicable and jurisdiction-agnostic.
New reporting rules, such as the Securities Financing Transactions Regulation and European Market Infrastructure Regulation already incorporate the CPMI-IOSCO technical guidance to various degrees.
As such, ISDA believes that greater coordination at the global level is necessary and requests that the interim International Governance Body (IGB) take action.
ISDA would like the IGB to intensify monitoring and coordination of jurisdictional alignment to the global CPMI-IOSCO recommendations.
This, the association says, will harmonise timelines, ease industry infrastructure, resource and cost burdens, reduce data fragmentation and enhance the quality of UTI compliance timeframes.
Commenting on ISDA’s request, securities finance financial services provider Margin Reform says the results of this will improve the ability of regulatory authorities to effectively aggregate trade data and meet the objectives of the G-20.
The letter written to the Financial Stability Board highlights several important challenges and potential adverse ramifications for industry participants that would likely result from inconsistent adoption of the Committee on Payments and Market Infrastructures (CPMI) and Board of the International Organization of Securities Commissions (IOSCO) technical guidance for UTIs.
The guidance, first published 2017, aims to produce clear guidance to authorities on the definition, format and usage of UTIs that meets the needs of users. The framework is global
in scale and based on relevant ISO technical standards where applicable and jurisdiction-agnostic.
New reporting rules, such as the Securities Financing Transactions Regulation and European Market Infrastructure Regulation already incorporate the CPMI-IOSCO technical guidance to various degrees.
As such, ISDA believes that greater coordination at the global level is necessary and requests that the interim International Governance Body (IGB) take action.
ISDA would like the IGB to intensify monitoring and coordination of jurisdictional alignment to the global CPMI-IOSCO recommendations.
This, the association says, will harmonise timelines, ease industry infrastructure, resource and cost burdens, reduce data fragmentation and enhance the quality of UTI compliance timeframes.
Commenting on ISDA’s request, securities finance financial services provider Margin Reform says the results of this will improve the ability of regulatory authorities to effectively aggregate trade data and meet the objectives of the G-20.
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